SAP and SuccessFactors: Transforming Human Capital Management

The human resources (HR) world is undergoing a dramatic shift driven by cloud technology, the increasing importance of employee experience, and the need for data-driven decision-making. SAP, a leader in enterprise software, and SuccessFactors, a pioneer in cloud-based human capital management (HCM), play a critical role in this transformation.

What is SAP?

SAP (Systems, Applications, and Products in Data Processing) is a multinational software giant known for its comprehensive enterprise resource planning (ERP) solutions suite. SAP’s software helps businesses streamline and automate their operations in finance, supply chain management, manufacturing, sales, and more.

What is SuccessFactors?

SuccessFactors is a cloud-based HCM software suite acquired by SAP in 2012. SuccessFactors provides solutions for a full range of HR functions, including:

• Core HR (Employee Central): Manages core employee data, payroll, and organizational structures.
• Talent Management: Encompasses recruiting, onboarding, performance management, compensation, learning, and succession planning.
• Workforce Analytics: Offers powerful analytics and reporting tools to turn HR data into actionable insights.

The Benefits of SAP and SuccessFactors

The integration of SAP and SuccessFactors provides businesses with a powerful platform for managing their human capital:

• Cloud-Based Flexibility: SuccessFactors’ cloud delivery model offers scalability, accessibility, automatic updates, and reduced IT overhead compared to traditional on-premise HR solutions.
• Integration with SAP ERP:  SuccessFactors integrates seamlessly with SAP’s ERP suite, helping to align HR processes with broader business functions. This can streamline data flow and ensure consistency across the enterprise.
• Focus on Employee Experience: SuccessFactors promotes a focus on employee engagement, putting a user-friendly interface and tools for self-service at the heart of its platform.
• Data-Driven Insights: Combined, SAP and SuccessFactors power an extensive toolkit for workforce analytics, helping HR leaders understand key trends, identify areas for improvement, and make strategic decisions based on data.

Key Use Cases

Here are some key examples of how organizations are using the combined power of SAP and SuccessFactors:

• Global Payroll Standardization: Businesses can leverage SuccessFactors Employee Central Payroll alongside SAP ERP to standardize and manage payroll processes across different countries and regions, ensuring compliance and efficiency.
• Streamlined Talent Acquisition: SuccessFactors’ recruiting module integrates with SAP ERP, simplifying candidate tracking and ensuring a seamless transition from hiring to onboarding and continued management.
• Personalized Learning and Development: SuccessFactors’ learning management system (LMS) can help organizations create personalized learning paths for employees, enabling development that aligns with individual needs and company goals.

Conclusion

The combination of SAP and SuccessFactors offers organizations a robust and comprehensive HCM platform. Companies looking to transform HR to a strategic function, improve employee experience, and enhance decision-making should consider the advantages of this integrated solution.